March 25, 2025

The Evolving "Tick Tock" AI Theory: ChatGPT-4.5

Please Note: This is a pre-print article that has been posted before it has been finalized. The final article will be updated in the coming days.



The relentless pace of artificial intelligence development often feels like a ticking clock, constantly moving towards more powerful and capable models. Since September 13, 2024, I have presented an evolving "Tick Tock AI Theory" to describe a pattern in this progress: a "Tick" represents the creation of a large, powerful, state-of-the-art Large Language Model (LLM), often expensive and computationally intensive. This is followed by a "Tock," where smaller, more efficient models are derived, offering performance close to the original "Tick" model but with greater accessibility and lower operational cost. This cycle then repeats with an even larger "Tick."

Now, with the release officially on February 27, 2025, and inferred details of ChatGPT-4.5, it's time to revisit this theory. Let's examine how this new model fits, and potentially reshapes our understanding of the AI development cycle.



The "Tick Tock" Cycle in Practice:

The persistent dynamic in AI development.[1] is supported by evidence:

  1. The "Tick": Pushing the Boundaries: Companies like OpenAI invest heavily to create foundational models (like the GPT series) that establish new benchmarks in performance. These models, often with hundreds of billions or even over a trillion of parameters, require massive computational power and significant financial investment for training. Training costs for frontier models like GPT-4 have run into the tens or even hundreds of millions of dollars. To note is the high cost of inference (running the model) as well, potentially "$1,000 to have o3 give us the best answer" reflects the reality that peak performance comes at a premium, including taking longer to get that answer. This aligns with the observation that the cost of training frontier models has been growing rapidly, potentially 2-3x per year.[2]

  2. The "Tock": Efficiency and Accessibility: Following the large model release, the focus often shifts to optimization. Techniques like knowledge distillation, pruning, and quantization create smaller models that retain much of the capability but are cheaper and faster to run. These "mini" versions and "small language models" make the technology more practical for wider application and deployment on less powerful hardware. This addresses the significant energy consumption and cost concerns associated with large models.[2][3][4][5] We've seen this with various model families where smaller, task-specific, or cost-optimized versions follow the flagship release.


ChatGPT-4.5: A Confirming "Tick" with a Twist?

ChatGPT-4.5 releasing in late February 2025 seems to fit the "Tick" phase perfectly:

  • Larger Scale: Described as OpenAI's largest and most advanced model in terms of personality and writing to date upon release. The estimate of 1 Trillion parameters, while unconfirmed, reflects the expected scale increase for a next-generation flagship model.

  • Performance Focused: Aimed at providing more natural, human-like, and emotionally intelligent interactions, with expanded knowledge and accuracy.[6]

  • High Cost: Implied by its scale and capabilities, likely exceeding previous models in computational requirements for inference, aligning with public cost observations. Although interestingly, some reports claim a tenfold increase in computational efficiency compared to GPT-4, suggesting optimization alongside scaling.


However, there are recent key deviations from the simplified middle Tick-Tock pattern theory:

  1. No Immediate "Mini" Model: Unlike previous cycles (like the o1/o3 series examples), there is no accompanying "mini" version released alongside ChatGPT-4.5. Although this breaks the direct sequence for an immediate release, it remains to be seen if there will be a smaller version of ChatGPT-4.5

  2. Separate Reasoning Model Planned: The plan isn't just to create a smaller version of 4.5, but to develop a distinct "reasoning model" based on it. This suggests specialization rather than just efficiency optimization. ChatGPT-4.5 itself is characterized as a non-chain-of-thought model, focused on natural interaction, with future models (potentially GPT-5 (ChatGPT-6) or successors) intended to explicitly incorporate chain-of-thought reasoning. In fact, the CEO of OpenAI has publicly stated on X that he would like the o series and GPT series models to merge.


Reasoning Models: The Current Era

The concept of separate "reasoning models" (like OpenAI's o1, DeepSeek-R1, Claude 3.7 Sonnet) is a significant development.[7] These models are often trained using reinforcement learning specifically to improve their ability to tackle complex problems step-by-step, akin to a human "thinking slow" or using a chain of thought.[8]

  • Why Separate? Reasoning might require different training techniques (like reinforcement learning focused on problem-solving) or simply be computationally intensive enough that bundling it by default isn't efficient. Separating allows users to choose the (likely more expensive) reasoning capability only when needed.

  • Impact on "Tick Tock": This suggests the "Tock" phase might be evolving. Instead of just smaller, generalist models, we might see a diversification into specialized models – some optimized for efficiency, others for specific capabilities like reasoning, coding, or data analysis.


The "Tick Tock" Cycle in Practice:
The persistent dynamic in AI development.[1] is supported by evidence:

The "Tick": Pushing the Boundaries: Companies like OpenAI invest heavily to create foundational models (like the GPT series) that establish new benchmarks in performance. These models, often with hundreds of billions or even over a trillion of parameters, require massive computational power and significant financial investment for training.

Training costs for frontier models like GPT-4 have run into the tens or even hundreds of millions of dollars. To note is the high cost of inference (running the model) as well, potentially "$1,000 to have o3 give us the best answer" reflects the reality that peak performance comes at a premium, including taking longer to get that answer. This aligns with the observation that the cost of training frontier models has been growing rapidly, potentially 2-3x per year.[2]


o3 AI Model delivers highest performance at a cost of over $1,000
Known as: 'computation during testing' or 'test-time-compute'


Originally shared by OpenAI, with news sources from TechCrunch and AIBase.com


ChatGPT-4.5 compared to ChatGPT-4o usage costs

ChatGPT-4.5 Operating Costs:
AI Inference Input cost, Cached Input cost, and Output cost for 1 Million Tokens, or approximately 3,000 pages. 

Highlight: Instead of about $2 dollars, the user spends $75 dollars on prompt input text.

Instead of $10 dollars for output, the user spends $150 dollars for an output response or answer.



Is an Update to the Theory Required?

ChatGPT-4.5 and the rise of reasoning models suggest the "Tick Tock" theory is changing:

  • The "Tick" Endures: The drive to build ever-larger, more capable foundational models ("Ticks") seems stronger than ever, despite escalating costs. The potential for even marginal performance gains justifies the immense investment for cutting-edge applications.

  • The "Tock" Diversifies: The subsequent phase ("Tock") might be less about simple miniaturization and more about adaptation and specialization. This could involve:

    • Efficient Generalists: Still creating smaller, cheaper versions for broad use.

    • Capability Specialists: Developing models fine-tuned or specifically trained for tasks like reasoning, coding, or specific industry knowledge.

    • Hybrid Approaches: Combining model techniques or using other techniques or designs to balance cost and performance.

  • Strategic Simplification: OpenAI's reported strategy involves unifying its model series (like the o-series and GPT-series) eventually, possibly culminating in a GPT-5 that integrates features from previous lines.[9] This suggests a potential future re-consolidation after a period of diversification. There's also discussion about open-sourcing older models as part of their strategy.[10]



Here's the Deal:
The "Tick Tock AI Theory" remains a valuable research framework for understanding the push-pull between cutting-edge performance and practical efficiency in AI development. The ChatGPT-4.5, as described, strongly confirms the "Tick" - the relentless pursuit of larger, more powerful models, even at great expense.

However, the absence of an immediate "mini" and the parallel development of distinct reasoning models signals a potential evolution in the "Tock" phase. It's becoming less about just shrinking the giant and more about carving out specialized tools from the foundational block. The AI clock is still ticking, but the rhythm might be growing more complex, incorporating syncopated beats of specialization alongside the steady pulse of scaling and efficiency. The development cycle could be shifting from a simple Tick-Tock to perhaps a:

"Tick → Adapt/Specialize → Tock → Adapt/Specialize" model.


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